Duplex Househack turned rental near Seattle WA (Tacoma / Puyallup)

[Kyle Hendricks]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Puyallup.

Purchase price: $547,000
Cash invested: $25,000

Duplex buy and hold. Househacked and renovated myself, allowing me and my fiance to live for cheaper than we were renting. We have since moved out, and the property is yielding just under a 50% cash on cash return after all expenses, vacancies, maintenance, and capx.

Financed FHA 3.5%. One unit rents as LTR for stability, the other as MTR for increased cash flow. It currently brings in a NET cashflow of $1,000 a month in Washington! (Who says you cant find cash flowing deals near Seattle?!)

How did you find this deal and how did you negotiate it?

MLS, negotiated 12k seller credit for rate buydown.

How did you finance this deal?

FHA 3.5% down.

How did you add value to the deal?

New floors, paint, trim, furnished. Brought rents to current market value. Garage sauna and gym on furnished side for increased rents.

Lessons learned? Challenges?

I was in Maui and bought site unseen, which was scary for my first deal but it was so worth it!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Fantastic real estate agent!

[William Simpson]

Wow nice Job Kyle! A great deal!

Just out of curiosity did you run into any troubles getting affordable insurance? 

Puyallup is notorious for being in the Mt.Rainer lahar zone and with insurance companies adjusting their models for climate risk i wouldn't put it past them jack up premiums in the area.